Union Medical Healthcare Limited

Incorporated in the Cayman Islands with limited liability

(Stock Code:2138)

COMPANY PROFILE

Union Medical Healthcare Limited (the "Company" or "UMH") is a company incorporated in Cayman Islands with limited liability, the shares of which are listed on The Stock Exchange of Hong Kong Limited (the "Stock Exchange") (stock code 2138). The principal activities of the Company and its subsidiaries (the "Group") are

(1) medical services, comprising aesthetic surgical procedures, minimally invasive procedures and energy- based procedures performed by Doctors and general consultation services, as well as dental, Chinese medicinal and ophthalmological services; (2) quasi-medical services, comprising energy-based procedures performed by our trained therapists who have completed mandatory internal training developed by our doctors; (3) traditional beauty services, comprising facials, massages and other non-invasive procedures; (4) skincare and beauty products, primarily of our private- label brands, PRODERMA LAB and Suissebeaute; (5) health management centre; and (6) chiropractic and physiotherapy services in Hong Kong. The places of our operations are mainly in Hong Kong, mainland China and Macau.

This environmental, social and governance ("ESG") report covers the Group's principal businesses for the year ended 31 March 2017 (the "Reporting Period"). This report is prepared in accordance with the requirements of "Environmental, Social and Governance Reporting Guide" as set out in Appendix 27 of the Rules Governing the Listing of Securities (the "Listing Rules") on the Stock Exchange.

SUSTAINABILITY STRATEGY

We regard sustainability as a core strategy in maintaining and developing the Company for the long term and our efforts in fulfilling corporate and social responsibility will contribute to the long-term value to the Company and the community in which we operate.

ENVIRONMENTAL PROTECTION Emissions

We believe that the businesses we operate are not a major source of environmental pollution and the impact of our operations on the environment is not significant. Nevertheless, our environmental objective is to operate and develop our business in a manner that minimises the impacts to the environment and natural resources. We also endeavor to improve our operation efficiency and our products and services in order to maximise productivity and minimize wastages. It is our policy to ensure that our operations comply with all relevant environmental laws, rules and regulations.

We proactively promote the environmental awareness and resources efficiency to our employees and propagate the Company's environmental policies both internally and externally. The Group regularly circulates environmental protection news, such as energy saving tips, via email to raise awareness of employees and encourages them to save electricity, water and paper.

The Group believes that due performance of environmental responsibility will improve the utilisation of the resources and will enhance the efficiency of the Group. The Group handles pharmaceutical products and disposes chemical and clinical wastes with care. We deal with the disposal of pharmaceutical products in accordance with the Waste Disposal Ordinance (Chapter 354 of the Laws of Hong Kong) and Waste Disposal (Clinical Waste) (General) Regulation (Chapter 354O of the Laws of Hong Kong).

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Use of Resources

The Group has always placed great emphasis on energy and resources conservation, and continually applies efficient consumption strategy to improve energy saving and reduce energy consumption.

The Company has actively promoted the electronic operation and sales activities recently. Awarded as World Green Organization("WGO")'s "Green Office" Label, the United Nations Sustainable Development Goals' "Better World Company" Label, and the core supporting organisation to Junior Chamber International ("JCI") Hong Kong, the Company has successfully fulfilled the 150 feasible green criteria imposed by the WGO which grouped into the following 9 categories: energy savings, water savings, waste reduction, paper/printing reduction, green procurement, IT use and disposal, transportation, education and awareness, and green innovation.

To create a green workplace, we encourage reducing, reusing and recycling of materials to minimizing office wastage in daily operations. For energy saving and greenhouse emission reduction, LED lamps for offices and warehouse are installed, air conditioners filters are cleaned and maintained regularly, eco-friendly stationery are used, environmentally friendly paper to print financial reports, recycling bins are provided at our office with waste paper and used toner cartridges collected for recycling.

The Group encourages its employees to handle documents electronically. When the use of paper is required, documents are required to use double-sided printing. In addition, we arranged conference calls or video conference to reduce staff's business trips.

The Environment and Natural Resources

The implementation of environmental protection procedures is in line with the Group's objectives as the savings in energy, water and other raw materials are not just environmentally friendly but also bring in cost- savings. The Group firmly believes that these will facilitate the sustainability of both environment and the business of the Group.

Save as otherwise disclosed in this report, the Group's operating activities have no significant impact on the environment and natural resources during the Reporting Period.

SOCIAL RESPONSIBILITIES

Employment and Labour Practices

Our business and our operations are expanding across the Asia Pacific region. We are compliant with local employment laws and regulations, and at the same time build in our company values into the corporate culture.

Retention of Employees

Our ability to retain staff is reflected in our voluntary turnover rates, which are relatively low compared to local market averages.

Culture

We encourage a culture of diversity of views and creative spirits. We believe that embracing differences in views foster empathy and teamworking across functional departments. We regularly collect feedback from employees on departmental co-operation and customer experiences and improve our processes towards customer satisfaction.

Diversity of thinking and having a balance of gender in our leadership group lends our decision making the agility and resilience we require in a fast-changing business environment.

Opportunities & Rights

At UMH, we are committed to providing a fair and equitable workplace where all individuals are treated

equally in every aspect of their work, including remuneration, to attract and retain talents.

Our human resources policies and procedures are intended to ensure these principles and as they relate to compensation, dismissal, recruitment and promotion, working hours, rest periods, anti-discrimination and other benefits and welfare in the markets where we operate. Employees work and leave the Group at their own free will, in accordance with the terms of the employment contracts.

The Group was not aware of any material breach of labour laws and regulations during the Reporting Period.

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Health and Safety

We have developed and implemented occupational health guidelines which include Fitness to Work Guideline, Communicable to Work Guidelines, Medical Emergency Response Plan, Communicable Disease Management and Customer Hygiene Regulations, which serve as work management regulations for optimal health at work conditions.

The Group pledges full compliance with relevant occupational health and safety legislations of Hong Kong, mainland China and Macau. Suitable insurance schemes which cover medical treatments and accidents have been provided to the staff members.

During the Reporting Period, the Group was not aware of any material non-compliance of applicable occupational health and safety laws and regulations.

Development and Training

The Group regularly updates the directors of the Company on the latest development regarding the Listing Rules and other applicable legal and regulatory requirements regarding subjects necessary in the discharge of their duties. We acknowledge the importance of training for the development of our employees as well as our Group. We encourage and support our employees in personal and professional training, through sponsoring training programmes, seminars, workshops and conferences, peer learning and on-the-job coaching, as well as reimbursement for external training courses to enhance their competencies in performing their jobs effectively and efficiently. We believe this is a mutually beneficial practice for achieving both personal and corporate goals as a whole.

To that end, the Group engaged APAC Impact Academy to conduct a series of design thinking workshops. "Design Thinking" is a powerful methodology based on insights from employees which seeks to optimize a truly collaborative journey, both for the employee at work, and customers' overall journey with the Group.

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Union Medical Healthcare Ltd. published this content on 03 September 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 03 September 2017 12:42:05 UTC.

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